European equities traded mostly higher on Thursday as investors reacted to reports suggesting that the United States and Iran were working toward restarting negotiations aimed at ending the ongoing conflict between the two countries.
By 07:10 GMT, the pan-European Stoxx 600 index had gained 0.1%, while Germany’s DAX rose 0.1% and France’s CAC 40 advanced 0.4%. In contrast, the UK’s FTSE 100 slipped 0.3%.
Reports point to renewed diplomatic efforts
According to reports, Washington and Tehran have been working with mediators on a one-page framework intended to relaunch discussions around a lasting peace agreement. The Wall Street Journal said negotiations are expected to begin next week in Pakistan.
The report added that talks over the following month would aim to address disputes surrounding Iran’s nuclear programme and the potential easing of sanctions, although major disagreements remain over issues such as uranium enrichment and international inspections.
President Donald Trump suggested that the U.S. military campaign against Iran, launched jointly with Israel in late February, could end if Tehran “agrees to give what has been agreed to.”
Oil prices fall as hopes for de-escalation grow
U.S. markets rallied strongly on Wednesday as expectations increased that the conflict could move toward a resolution.
Oil prices also declined sharply amid hopes that tanker traffic through the Strait of Hormuz could resume. The key shipping route off Iran’s southern coast handles roughly one-fifth of global crude oil flows and has been heavily disrupted during the conflict.
Brent crude futures, the global benchmark for oil prices, were last down 3.7% at $97.92 per barrel on Thursday.
Corporate earnings influence market sentiment
Company earnings releases across Europe also remained a focus for investors.
Shares in Shell (LSE:SHEL) moved lower after the energy major reported quarterly earnings above market expectations but announced a reduction in the pace of share buybacks.
Meanwhile, semiconductor designer Arm Holdings (NASDAQ:ARM) issued first-quarter revenue guidance ahead of analyst forecasts, reinforcing optimism that demand for artificial intelligence-related chips remains strong.
European semiconductor stocks traded higher following the announcement.
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